A potential settlement with Trenton Water Works over water rate increases has left Hamilton fire officials with visions of ballooned budgets and referendums, but the impact may not be as harsh for the three other ratepayer towns involved in the 4-year-old lawsuit.

Hamilton, which has fire districts with their own budgets, would likely have to pass the 40 percent rate increase through to district residents via their tax bills.

Lawrence and Ewing don’t have fire districts, and each municipality handles funds for hydrant use. The rate increase has already been passed along to residents through their tax or water bills.

Hopewell Township, which does have a fire district, could expect a partial refund of water rate funds already paid.

Hamilton officials approved the contract settlement this week. Lawrence officials will discuss approving the settlement at their meeting Oct. 17. Hopewell approved the deal Sept. 24, and the Ewing council is expected to pass the settlement on Tuesday, Council President Kathy Wollert said.

The deal, if accepted by all parties, would give all four towns a measure of control over spending at the water utility. They would be able to approve any fund transfers to the city’s general budget and object to certain expenditures of funds for non-water utility purposes. Previously, workers paid by the utility had been assigned to other city departments.

One reason the lawsuit was filed was because Trenton was “transferring money out of the water works budget into the general budget,” Hopewell Township Mayor Michael Markulec said. “And while we don’t believe they should be doing that, at least we’ve gotten better transparency.”

Additionally, Trenton Water Works would provide a five-year maintenance plan for upgrading and renovating its infrastructure, more than 70 years old in some places.
Doug Brower, president of the Prospect Heights Volunteer Fire Co. in Ewing, said the fire company’s main concern with Trenton Water Works had always been the maintenance and service of its fire hydrants and infrastructure.

“We’ve always looked for additional support from Trenton Water Works for servicing and fixing hydrants and for the most part, recently, they’ve been pretty good,” Brower said.
“It’s a longer-term issue with the maintenance plan, but it’s been better recently.”

Hopewell likely will enjoy a partial refund of water fees already paid because the township’s single fire district had increased previous year’s budgets in anticipation of the day when the rate increases would return, Hopewell district emergency services chief Matthew Martin said.

Because the increased rates are only retroactive to January 2012, the fire district will be receiving a credit for overpayment until that date, Markulec said.

The four towns filed suit in 2008 when the Trenton City Council approved rate increases in anticipation of selling the 460 miles of infrastructure to privately-owned New Jersey American Water.

The move would have made the utility subject to the Board of Public Utilities, which requires an equal rate for all ratepayers.

When Trenton voters overwhelmingly rejected the $80 million sale, the sides were sent back to the drawing board.